AOPA credit card --- WARNING.

Well, the rate on an auto or home loan is fixed by the contract, silly!
Or else it is specifically bound by the contract to whatever
increases that are in the contract. Just like the rate on your credit
card is variable according to the contract you signed when you applied.
You DID read what you agreed to, didn't you? If you didn't agree with
it, why did you sign the application?

BTW, in fact I do not have ANY debt outstanding. It's fun to tell that
to people calling offering re-financing. I'm not rich (except in
name)... just frugal.

And frankly, I don't care whether I impress you. Frankly, you don't
impress me, much.

Rich


RS wrote:

What would you do if they hiked the APR on your auto or home loan just
because they felt like it, even if you had a perfect payment history? Well,
that's what the credit card companys are doing now - they are changing the
rules mid-stream. Credit is credit - regardless what it is for. You guys on
your high moral horses about paying credit cards off every month do not
impress me (unless you have zero credit - no home, auto, commercial loans at
all).

"RS" wrote in message
news:XVspd.565691$mD.442744@attbi_s02...

I'm not following you. If you pay "on time, every time" -- credit card
companies CAN'T charge you any interest.


What would you do if they hiked the APR on your auto or home loan just
because they felt like it, even if you had a perfect payment history?

How could credit card companies hike the APR on my auto or home loan?

On Thu, 25 Nov 2004 22:21:43 GMT, "RS" wrote:

"Jay Honeck" wrote in message
news:3Lspd.391816$wV.73568@attbi_s54...
But tell me, what will you do when home, auto and commercial proprerty
loan companies hike their rates just because they feel like it? Even if
you pay on time, every time. All they need to do is lobby hard enough to
put it into law and you are totally screwed.

What then, Mr Clever Guy?

I'm not following you. If you pay "on time, every time" -- credit card
companies CAN'T charge you any interest.

What would you do if they hiked the APR on your auto or home loan just
because they felt like it, even if you had a perfect payment history? Well,

Does the phrase; Adjustable Rate Mortgage ring a bell.

that's what the credit card companys are doing now - they are changing the
rules mid-stream. Credit is credit - regardless what it is for. You guys on
your high moral horses about paying credit cards off every month do not
impress me (unless you have zero credit - no home, auto, commercial loans at
all).

That doesn't quite make sense.
They are not changing the rules. They are there in B & W (color in
some cases). In every card I've had over the last 10 years they have
stated they could change the rates at any time they deemed necessary.

The point is: If you really need to borrow, which nearly every one
does at one time or another, do it sensibly.

Like the checks they offer at very low interest rates. Is there a
catch? Generally the answer is yes.

Move your loans to our card and pay only 3%? Look in the fine print
and that may only be good for a couple of months and then the rates go
to 18% APR, or even higher. Have enough equity to cover them? Take
out a second mortgage to pay them off. Most likely the rates will
only be about a third of that of the CC. Then cut up every card
except one and limit its use to absolutely necessary items only.

OTOH car and home loans get bought and sold just like any other
commodity. Some have some pretty high penalties for paying off early.

*IF* I need money I can write checks against the equity in our home
loan. I could get a signature loan. The interest is only slightly
higher than the mortgage which is a small fraction of what a credit
card would charge. It's also treated as a separate loan and doesn't go
against the home loan... unless we'd default.

For the person who has 3 or 4 credit cards, finding one company with a
low introductory APR for 6 months might be their way out of a deep
hole that's been getting deeper.

You have to be careful about changing CC companies though as each
credit check goes against your rating.

Be it a CC or bank loan they have to tell you up front, just what it's
going to cost. Be skeptical of the TV adds. Take time to read the
fine print no matter how restless the loan officer gets. :-)) Those
companies are going to get their money one way or another

Credit card companies usually make a fixed amount off every sale.
Probably on the order of 5%. You can say the merchant pays that, but
who isn't going to pass it on to the customer?
When the CC companies start pushing the rates up it is for one of two
reasons. General rates are going up, and/or they have a lot of
customers defaulting on payments. CC rates are so high because there
are so many defaulting on payments.


Credit cards are the easiest way to borrow money. They are also the
most expensive/poorest way, with maybe the exception of the local
loan sharks.

I don't know if the law has changed, but at one time the credit card
companies could charge at least double what an individual could for a
loan.

BTW, every since the checking account has existed, people have
depended on the time for a check to clear. That is coming to an end
as are the jobs flying canceled checks. In the not too distant
future, when you write a check, it will be debited against your
account and credited to the payee almost instantly. It's this way in
some areas now, but it's becoming universal.

Roger Halstead (K8RI & ARRL life member)
(N833R, S# CD-2 Worlds oldest Debonair)
www.rogerhalstead.com

Roger writes:



BTW, every since the checking account has existed, people have
depended on the time for a check to clear. That is coming to an end
as are the jobs flying canceled checks. In the not too distant
future, when you write a check, it will be debited against your
account and credited to the payee almost instantly. It's this way in
some areas now, but it's becoming universal.


Make that "past" as Check21 went into effect this month. Note your deposits
STILL 'anti-float'....

--
A host is a host from coast to
& no one will talk to a host that's close........[v].(301) 56-LINUX
Unless the host (that isn't close).........................pob 1433
is busy, hung or dead....................................20915-1433

"David Lesher" wrote in message
...
Roger writes:

BTW, every since the checking account has existed, people have
depended on the time for a check to clear. That is coming to an end
as are the jobs flying canceled checks. In the not too distant
future, when you write a check, it will be debited against your
account and credited to the payee almost instantly. It's this way in
some areas now, but it's becoming universal.


Make that "past" as Check21 went into effect this month. Note your
deposits
STILL 'anti-float'....

Whereas many other places on the planet have been doing electronic check
clearing for years and years... and years. Banking systems in the US are
archaic, dinosaurs...

"RS" wrote in message news:Bvspd.565639$mD.474111@attbi_s02...
"Jay Honeck" wrote in message
news:%9spd.150672$R05.66688@attbi_s53...
If you have an MBNA credit card, look at your statements...if you like
being screwed by the credit card company then ignore this thread and do
nothing.

You talk like MBNA owes you something. If you don't want to use their
damned card -- don't.

If MBNA charges you 20% interest -- and you're dumb enough to use their
card -- who cares? It's not like there aren't 100 other credit card
companies begging for your business, so either pay the bill off each
month, or tell 'em to take a hike.

Ok. So you also support legalized loan sharking. Fine.

Jay mentioned that he hasn't payed card interest since 1985. It
appears that YOU are the one who supports legalized loan sharking.
You support it with cash out your pocket.


But tell me, what will you do when home, auto and commercial proprerty loan
companies hike their rates just because they feel like it? Even if you pay
on time, every time. All they need to do is lobby hard enough to put it into
law and you are totally screwed.

Not likely (unless you live in Delaware or South Dakota). The
legitimate loan business is pretty well regulated by feds and states.
Credit cards are the dark side of the loan business. Lenders know
that a legitimate, knowledgable borrower would never sign a loan
contract that allowed the lender to jack up interest and/or fees at
their whim. That is exactly what you do when you borrow money on a
card.


What then, Mr Clever Guy?

Jay hasn't paid the loansharks since 1985. You're complaining that
MBNA jacked up your rate (which they have every right to do under your
contract). Who's the clever guy?

John Galban=====N4BQ (PA28-180)

"John Galban" wrote in message
om...
Jay mentioned that he hasn't payed card interest since 1985. It
appears that YOU are the one who supports legalized loan sharking.
You support it with cash out your pocket.


Actually it isn't MBNA that is getting his money...its me! Somebody has to
underwrite my $250 annual rebate and it is people who carry a balance. I
talked to an MBNA manager at AOPA expo and asked him how many cardholders
only used to card to make purchases qualifying for the rebate and not
carrying a balance. He said that it was a "pretty high percentage". The
rate on the card is not just a function of MBNA's cost of funds, it is also
default rate and the cost of paying the cards "perks".

Mike
MU-2

Jay Honeck wrote:

If you have an MBNA credit card, look at your statements...if you like
being screwed by the credit card company then ignore this thread and do
nothing.


You talk like MBNA owes you something. If you don't want to use their
damned card -- don't.

If MBNA charges you 20% interest -- and you're dumb enough to use their
card -- who cares? It's not like there aren't 100 other credit card
companies begging for your business, so either pay the bill off each month,
or tell 'em to take a hike.

We haven't paid a nickel of credit card interest since 1985 -- and that was
to pay for our wedding. (And I've felt stupid about paying *that* ever
since.) The ONLY valid reason to use a credit card is to consolidate all of
your bills into one easily payable check each month.

Actually, there are lots of other valid reasons. One is that in many
places you can't do things like rent a car without plastic. Many car
rental places won't take cash.


Matt

"Matt Whiting" wrote in message
...
Jay Honeck wrote:

If you have an MBNA credit card, look at your statements...if you like
being screwed by the credit card company then ignore this thread and do
nothing.


You talk like MBNA owes you something. If you don't want to use their
damned card -- don't.

If MBNA charges you 20% interest -- and you're dumb enough to use their
card -- who cares? It's not like there aren't 100 other credit card
companies begging for your business, so either pay the bill off each
month,
or tell 'em to take a hike.

We haven't paid a nickel of credit card interest since 1985 -- and that
was
to pay for our wedding. (And I've felt stupid about paying *that* ever
since.) The ONLY valid reason to use a credit card is to consolidate
all of
your bills into one easily payable check each month.

Actually, there are lots of other valid reasons. One is that in many
places you can't do things like rent a car without plastic. Many car
rental places won't take cash.


Matt

So you pay the bill off when you get it. Get it?

Dave Stadt wrote:

"Matt Whiting" wrote in message
...

Jay Honeck wrote:


If you have an MBNA credit card, look at your statements...if you like
being screwed by the credit card company then ignore this thread and do
nothing.


You talk like MBNA owes you something. If you don't want to use their
damned card -- don't.

If MBNA charges you 20% interest -- and you're dumb enough to use their
card -- who cares? It's not like there aren't 100 other credit card
companies begging for your business, so either pay the bill off each

month,

or tell 'em to take a hike.

We haven't paid a nickel of credit card interest since 1985 -- and that

was

to pay for our wedding. (And I've felt stupid about paying *that* ever
since.) The ONLY valid reason to use a credit card is to consolidate

all of

your bills into one easily payable check each month.

Actually, there are lots of other valid reasons. One is that in many
places you can't do things like rent a car without plastic. Many car
rental places won't take cash.


Matt


So you pay the bill off when you get it. Get it?

Yes, as I said earlier, that is exactly what I do. My point was that
there is more than ONE valid reason to have a credit card. For me, bill
consolidation isn't even the most important reason.


Matt